Business model

2015 en business model

* All figures from 2015

Marine Solutions

Wärtsilä commands a strong position in all main marine segments as well as in the offshore oil and gas industry as a supplier of highly rated ship machinery and systems. Marine solutions include products, systems and services.

Main drivers:

  • Developments in the global economy
  • Development of world trade and needed transportation capacity
  • Development of oil and gas prices
  • Environmental regulations
  • Development of new offshore oil & gas fields


Energy Solutions


Wärtsilä is a leading supplier of modern, environmentally advanced, highly efficient, and dynamic power plants that allow the maximum integration of intermittent renewable power generation.

Main drivers:

  • Economic development and growth in electricity consumption
  • Growth in use of gas as fuel in power plants
  • Need for fuel flexibility due to uncertainty in gas availability
  • Environmental concerns and renewable energy investments
  • Ageing generation capacity


Services

Services supports both Marine Solutions and Energy Solutions customers with the most comprehensive portfolio of services and the broadest service network in the industry. Accounting for approximately 40-50% of total net sales, Services provides stability and offsets the cyclicality of our target markets.

Market drivers:

  • Size and development of the active fleet
  • Lifecycle efficiency
  • Changes in environmental regulations
  • Improved safety aspects
  • The outsourcing of operations and management


Manufacturing


Wärtsilä’s manufacturing focuses mainly on assembly, test running, and finishing of products. Wärtsilä’s business model, which is strongly connected to a broad network of suppliers, guarantees flexibility in capacity.

Manufacturing (integrated into Marine Solutions) supplies medium speed engines to both Energy Solutions and Marine Solutions from the same assembly lines, allowing for synergies in the production process and in research and development. The manufacturing of medium-speed main engines is concentrated at the delivery centres in Vaasa, Finland and Trieste, Italy. The product portfolio also includes catalytic systems, and emission monitoring products. Marine Solutions' activities include product development and manufacturing related to other than 4-stroke engines. 2-stroke engines remain a licensing business and has no own manufacturing.

Supplier network

Wärtsilä has around 1,100 suppliers globally, and our network is continuously being further developed. Our sourcing strategy is to focus on carefully selected suppliers, with a strong emphasis on performance, innovation, and a presence close to our manufacturing units and joint ventures.